Introduction: Transitional Provisions under GST Transitional Provisions in GST Act is to clarify as to when and how the operative parts of the enactments are to take effect. The Transitional Provisions generally are intended to take care of the events during the period of transition.the background material is based on CGST Bill passed by the LS on March 2017 and the Model SGST Law issued during November 2016. What is the Status of Existing Officers? What is the Status of Existing Dealers, Manufacturers & Service Provider? ITC Related Transitional Provisions? Movement of Goods after the enactment of GST? Price Fluctuations? Taxability in case of Job Work? Adjudication /Appeals under earlier law? How transactions in midway can be treated?
01.Status of Existing Officers? General Provisions (Sec 165 of Model GST Law) All officers appointed under the Central and State laws shall be deemed to have been appointed as GST officers under the provisions of GST Act. Central/State governments may issue orders/rules for smooth transition into GST for the matters not specifically covered in the Model GST law the orders/rules not in conflict with purposes of the Act 02. Migration of existing Taxpayers to GST (Sec 139 of CGST Bill)&(Sec 166 of Model SGST Law) [Rule 16 of Registration] Every person registered under earlier laws be issued a certificate of registration on provisional basis. Provisional Certificate of registration shall be valid for six months from the date of issue. GST Council may extend this time Such person shall furnish further information within given time (3 Months) Final certificate of registration shall be granted If information not furnished, registration certificate shall be cancelled The existing tax payer may apply for cancellation, if he is not liable to registration under Section 19, within 30 days from appointed day. 03.Input Tax Credit related Transitional Provisions? 03.1 Amount of CENVAT credit carried forward in a return? (Sec 140(1) of CGST Bill) (Sec 167 of Model SGST Law) [Rule 1(1) of Transitional Provision] A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the amount of Cenvat credit carried forward in a return, furnished under the earlier law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed. Input tax credit should be admissible in the earlier regime, has furnished the returns under the existing law, amount of credit does not relates to manufacture of Exempted goods. Also should be admissible in CGST/SGST Act. Excess credit recoverable as arrears of tax revenue if the said amount found recoverable as a result of proceedings instituted before or after appointed day.as per rules and procedures prescribed.
Illustration 1:- Assume that GST is applicable from 1st July, 2017 and the amount of credit as per the return for the period ending 30th June, 2017 is as follows:- Particulars of Input tax Credit Credit amount as per return (Rs.) Central Excise 200,000 Service Tax 100,000 Education Cess 10,000 Secondary and Higher Education Cess 5,000 KrishiKalyan Cess 5,000 Additional Duty u/s 3(1) of CTA 40,000 Additional Duty u/s 3(5) of CTA 30,000 Input Tax Credit under VAT 50,000 Total 440,000 What will be the amount of opening CGST and SGST to be brought forward as per the GST Law as on 1st July, 2017? Sol: The amount of CGST and SGST to be brought forward on 1st July, 2017 will be calculated as follows: A. If the tax payer is a Manufacturer:- CGST Components ITC as CGST Central Excise 200,000 Service Tax 100,000 Education Cess 10,000 Secondary and Higher Education 5,000 Cess Additional Duty u/s 3(1) of CTA 40,000 Additional Duty u/s 3(5) of CTA 30,000 Total CGST 385,000 Note: KKC will not be allowed SGST Components SGST Value Input Tax Credit under VAT Rs.50,000/- Total SGST Rs.50,000/-
B. If the tax payer is a Service Provider:- CGST Components ITC as CGST Central Excise 200,000 Service Tax 100,000 KrishiKaylan Cess 5,000 Additional Duty u/s 3(1) of CTA 40,000 Total CGST 390,000 03.2 Un-availed CENVAT credit on capital goods, not carried forward in a return, to be allowed in certain situations (Sec 140(2) of CGST Bill) (Sec 168 of Model SGST Law) [Rule 1(2)(a) of Transitional Provision] A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the UnavailedCenvat credit, not carried forward in a return, furnished under the earlier law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Input tax credit should be admissible in the earlier regime Also should be admissible in GST UnavailedCenvat credit means the amount that remains after subtracting the amount of Cenvat credit already availed Capital goods means capital goods under CCR 2004 Excess credit recoverable as arrears of tax revenue if proceedings instituted before or after appointed day IIIustration: A manufacturer purchased a capital asset worth Rs.11,25,000/- (including excise duty of Rs. 1,25,000) on 5th May, 2017. In the financial year 2017-18, Is he eligible for availing balance CENVAT Credit? Sol: Yes, he could only avail CENVAT Credit to the extent of 50% i.e. Rs. 62,500. The Unavailed CENVAT Credit on Capital Goods as on 1st April, 2018 will be Rs. 125,000 62,500 = Rs. 62,500.Can be availed in GST Regime. Eligible Duties and Taxes :- (Sec 140(10) of CGST Bill) (Sec 169 & 170 of Model SGST Law) CGST Excise duty specified in First Schedule to CETA, 1985 Excise duty specified in Second Schedule to CETA, 1985 Additional duty of excise leviable under Section 3 of Additional Duties of Excise (Textile and Textile Articles) Act, 1978
Additional duty of excise leviable under Section 3 of Additional Duties of Excise (Goods of Special Importance) Act, 1957 NCCD Additional duty leviable under Section 3(1) of Customs Tariff Act, 1975 CVD Additional duty leviable under Section 3(5) of Customs Tariff Act, 1975 SAD Service Tax leviable under section 66B of the Finance Act, 1994 SGST Value Added Tax 03.3 Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations? (Old Law Exempted Goods - Liable in GST)(Sec 140(3) of CGST Bill) (Sec 169 of Model SGST Law) [Rule 1(3) of Transitional Provision] The registered taxable person, who was not liable to be registered or engaged in the manufacture of exempted goods under the earlier law, but which are liable to tax under this Act, shall be entitled to take, credit of eligible duties and taxes, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions: Such inputs/goods are used/intended to be used for making taxable supply Eligible for credit under the earlier law but for his not being liable for registration or the goods remaining exempt under earlier law Eligible for input tax credit in the GST law In possession of the invoices or other prescribed documents not older than 12 months preceding the appointed day Amount of credit to be computed as per GAAP Excess credit recoverable as arrears of tax revenue IIIustration: A trader supplying goods on e-commerce having an aggregate turnover of Rs. 1 lakhs was not required to be registered as per the State VAT law earlier. Is he liable to claim Credit as per GST? Sol: Yes, as per the definition of the taxable person as per Section 9 read with Schedule III, there is no threshold for such category of persons. Therefore, he will be liable to pay tax under GST and also can claim credit on inputs held though he was below the taxable turnover earlier
03.4 Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations? (Manufacturer& Service Provider who does BOTH EG & NEG or ES & NES(Sec 140(4) of CGST Bill) [Rule 1(1) &(3) of Transitional Provision] A registered taxable person, who was engaged in the manufacture of non-exempted as well as exempted goods under the Central Excise Act, 1994 shall be entitled to take, in his electronic credit ledger, the amount of Cenvat credit carried forward in a return furnished under the earlier law by him in terms of Section 140(1) of CGST Bill and the amount of Cenvat credit of eligible duties in respect of inputs held in stock on the appointed day, relating to exempted goods or services, in terms of Section 140(3) of CGST Bill. 03.5 Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from Composition Scheme?(Sec 140 (6) of CGST Bill) (Sec 172 of Model SGST Law) A registered taxable person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of tax payable under the earlier law ( Composition Taxpayer ), shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to following conditions: Such input/goods are used/intend to use for making taxable supply Such tax payer not paying tax under section 10 composition under GST Eligible for credit under the earlier law but for his being composition taxpayer Eligible for input tax credit in the GST law 6In possession of the invoices or other prescribed documents not older than 12 months Amount of credit to be computed as per GAAP Excess credit recoverable as arrears of tax revenue 03.6 Credit distribution of service tax by ISD? (Sec 140 (7) of CGST Bill)&(Sec 190 of Model SGST Law) The input tax credit on account of services received prior to the appointed day by an ISD Shall be eligible for distribution as credit under this Act Even if invoices relating to such services received on or after the appointed day Date of receipt of services is more important.
03.7 Transfer of unutilized Cenvat Credit by taxable person having Centralised Registration(Sec 140 (8) of CGST Bill)(Sec 191 of Model SGST Law) Where a taxable person having centralized registration under the earlier law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of Cenvat credit carried forward in a return, furnished under the earlier law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed. If the taxable person files his return for the period ending with the day immediately preceding the appointed day within 3 months of the appointed day, such credit shall be allowed subject to the condition that the said return is either an original return or a revised return where the credit has been reduced from that claimed earlier. The taxable person shall not be allowed to take credit unless said amount admissible as Input Tax Credit under this Act. That such credit may be transferred to any of the registered taxable persons having the same PAN for which the centralized registration was obtained under the earlier law. 03.8 Cenvat Credit in case of Re-Credit after Payment of Service in 3 Months(Sec 140 (9) of CGST Bill) (Sec 197 of Model SGST Law) Where any Cenvat credit availed for the input services provided under the earlier law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed provided that the taxable person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. 03.9 Tax paid on Goods lying with Agents to be allowed as credit? (Sec 192 of Model SGST Law) Goods of Principal lying at the premises of the agent on the appointed day The agent shall be entitled to take credit Agent is registered taxable person under GST Such stock is declared by the principal and agent in the form and manner within such time as may be prescribed Invoices relating to such goods not earlier than 12 months from appointed day The principal has not availed Input Tax Credit or Reversed the Input Tax Credit.
03.10 Tax paid on Capital Goods lying with Agents to be allowed as credit? (Sec 193 of Model SGST Law) Capital goods of Principal lying at the premises of the agent on the appointed day The agent shall be entitled to take credit of tax paid on such capital goods subject to the conditions: Agent is registered Such stock is declared by the principal and agent in the form and manner within such time as may be prescribed Invoices relating to such goods not earlier than 12 months from appointed day The principal has not availed input tax credit or reversed the tax credit to the extent availed by him 03.11 Incase of Branch Transfers? (Sec 194 of Model SGST Law) Any amount of input tax credit reversed prior to the appointed day Shall not be eligible as credit of input tax Under this Act Reversal of ITC in case of Branch Transfer is Important. 03.12 Refund of Cenvat Credit?(Sec 142(3) of CGST Bill) (Sec 179 of Model SGST Law) Every claim of refund of any duty/tax/interest/any other amount filed before, on or after the appointed day Shall be disposed off in accordance with the provisions of earlier law Refund claim accepted shall be paid in cash Partially/ completely rejected refund claim shall be lapsed If ITC Claimed under GST, NO Refund of Cenvat Credit 03.13 Refund of Cenvat Credit of Goods or Services Exported? (Sec 142 (4) of the CGST Bill) Every claim for refund of any duty or tax paid under earlier law, filed after the appointed day, for the goods or services exported before or after the appointed day, shall be disposed of in accordance with the provisions of earlier law. Where any claim for refund of Cenvat credit is fully or partially rejected, the amount so rejected shall lapse: Thatno refund claim shall be allowed of any amount of Cenvat credit where the balance of the said amount as on the appointed day has been carried forward under this Act.
03.14 Refund of Service Tax on Services NOT Provided? (Sec 142 (5) of CGST Bill) Every claim for refund of tax deposited under the earlier law in respect of services not provided, filed after the appointed day, shall be disposed of in accordance with the provisions of earlier law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of earlier law other than the provisions of subsection (2) of section 11B of the Central Excise Act, 1944 (1 of 1944). 04.Movement of Goods After the enactment of GST? 04.1 Credit of eligible duties and taxes in respect of Inputs or Input Services during Transit?(Sec 140(5) of CGST Bill)(Sec 171 of Model SGST Law) A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid before the appointed day, subject to the condition that the invoice or any other duty/tax paid document of the same was recorded in the books of accounts of such person within a period of thirty days from the appointed day. The aforesaid period of thirty days may, on sufficient cause being shown, be extended by the competent authority (Commissioner) for a further period not exceeding thirty days. The said registered taxable person shall furnish a statement, in such manner asmay be prescribed, in respect of credit that has been taken under this section. 04.2 In case of Exempted goods returned to the place of business on or after the appointed day? (Sec 173 of Model SGST Law) Where any goods on which duty had been exempt under the earlier law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, no tax shall be payable thereon if such goods are returned to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of proper officer. In case the goods are returned after 6 months, the tax shall be payable by the such person returning the goods Illustration: A manufacturer had removed exempted goods for sale worth Rs. 5,00,000/- on 1st March, 2017. These goods become taxable under GST. GST is assumed to be applicable from 1st
July, 2017. On 10th November, 2017, goods worth Rs. 1,00,000/- is returned by the buyer. Is tax payable? Sol: Since, the goods are returned within 6 months from the date of applicability of GST, no tax will be payable. In the above IIIustration, if the goods had been returned on 10th March, 2018, is there any change in taxability? Yes, the tax will have to be paid by the buyer who returned the goods on the value of Rs.1,00,000/- because 6 months elapses from the date of applicability of GST 04.3 Duty paid goods returned to the place of business on or after the appointed day? (Sec 142 (1) of CSGT Bill)(Sec 174 of Model GST Law) Where any goods on which duty had been paid under the earlier law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, no tax shall be payable thereon if such goods are returned to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of proper officer. Taxable person receiving such goods within a period of 6 months credit of duty paid earlier allowed. In case if person is other than non-registered taxable person. In case the goods are returned after 6 months, the tax shall be payable by the person returning such goods. Reversal of credit taken by the person now returning goods. Illustration: A manufacturer had removed goods for sale worth Rs.5,00,000/- on 1st April,2017after paying the necessary duty under Central Excise Law. These goods are also taxable under GST. GST is assumed to be applicable from 1st July, 2017. On 10th August, 2017, goods worth Rs. 1,00,000 is returned by the buyer. Is tax payable? If Goods are Sold to a person Other than Registered Taxable Person? Sol: Since, the goods are returned within 6 months from the date of applicability of GST, no tax will be payable.
04.4 If Goods sent on approval basis returned on or after the appointed day? Sec 142(12) of CSGT Bill & (Sec 195 of Model GST Law) Goods sent on approval basis, not earlier than 6 months before the appointed day, Goods returned within six months or extended period (i.e. 2 months) from the appointed day No tax shall be payable under this Act Goods not returned within given period, GST payable by supplier. Goods returned after given period, GST payable by person returning goods. 05.PriceFluctuation? Issue of Supplementary Invoices, Debit or Credit Notes where price is revised in pursuance of a contract (Sec 142 (2) of CSGT Bill) (Sec 153 of Model SGST Law) Contract prior to the appointed day Price revised upwards on or after the appointed day Issue debit note/supplementary invoices to the recipient Within 30 days of such revision Debit note shall be deemed to have been issue under this Act Price revised downwards on or after the appointed day Issue credit note/supplementary invoices to the recipient Within 30 days if such revision Taxable person allowed to reduce output tax liability, when the recipient has reduced his input tax credit to the extent reduction in price Illustration A contract for supply of manpower was entered on 10th June, 2017 for Rs. 8,00,000. Due to certain re-negotiations, this price was escalated to Rs. 8,60,000 on 15th July, 2017. Assuming applicability of GST from 1st July, 2017, how the variation in price should be treated? Sol: The supplier should issue a supplementary invoice/debit note for Rs. 60,000 within 30 days of 15th July, 2017 i.e. 15th August, 2017. This supplementary invoice/debit note will be assumed to be for outward supply of Rs. 60,000/- under GST Law.
06.Taxability in case of Job Work: 06.01 Inputs removed for Job Work and returned on or after the appointed day? (Sec 141 (1) of CSGT Bill) (Sec175 of Model SGST Law) Where any inputs received in a factory/place of business had been removed as such or removed after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purposes in accordance with the provisions of earlier law prior to the appointed day and such inputs, after completion of the job work, are returned to the said factory/place of business on or after the appointed day, no tax shall be payable if such inputs are returned to the said factory within six months from the appointed day. The period can be extended by Commissionerfor a further period not exceeding 2 months In case goods not returned in the above time period, GST payable by the Manufacturer In case the goods returned after the period the Job Worker shall also pay the GST. For taking benefit of this provision, both manufacturer and job worker shall declare the details of such inputs held in stock on the appointed day. Illustration 1: A manufacturer had removed inputs worth Rs. 15,00,000 on 10th February, 2017 for job work. GST is assumed to be applicable from 1st July, 2017. On 25th September, 2017, the inputs is returned by the job worker. Is he liable to pay tax? Sol: No, since the inputs are returned within 6 months from the date of applicability of GST, no tax will be payable. 2: In the Illustration given above, if the goods had been returned on 10th January, 2018, whether the taxability remains same? Sol: No, the tax will have to be paid by the Job Worker who returned the goods because 6 months elapses from the date of applicability of GST. 3. If the goods are not returned by the Job Worker within the period of 6 months from the applicability of GST i.e. till 31th December, 2017, What is the effect of tax for Manufacture? Sol: Tax will have to be paid by the Manufacturer.
06.2 Semi-Finished Goods removed for Certain Manufacturing Process and returned on or after the appointed day? (Sec 141 (2) of CSGT Bill) (Sec 176 of Model SGST Law) Where any semi-finished goods had been removed from the factory/place of business to any other premises for carrying out certain manufacturing process in accordance with the provisions of earlier law prior to the appointed day and such goods after undergoing manufacturing process are returned to the said factory on or after the appointed day, no tax shall be payable if the said goods are returned to the said factory within six months from the appointed day. The period can be extended for a further period not exceeding 2 months In case goods not returned in the above time period, GST payable by the Manufacturer In case the goods returned after the period the job worker shall also pay the GST For taking benefit of this provision, both manufacturer and job worker shall declare the details of the goods held in stock on the appointed day 06.3 Finished Goods removed for carrying out certain processes NOT amounting to Manufactureand returned on or after the appointed day? (Sec 141 (3) of CSGT Bill) (Sec 177 of Model GST Law) Where any excisable goods manufactured in a factory had been removed withoutpayment of duty for carrying out tests or any other process not amounting to manufacture, to any other premises, whether registered or not, in accordance with the provisions of earlier law prior to the appointed day and such goods, after undergoing tests or any other process are returned to the said factory on or after the appointed day, no tax shall be payable if the said goods are returned to the said factory within six months from the appointed day The period can be extended for a further period not exceeding 2 months In case the goodsreturned after the period the job worker shall also pay the GST The manufacturer may transfer the said goods from the said other premises on payment of tax in India or without payment of tax for exports Illustration 1: A manufacturer had removed finished goods worth Rs.5,00,000 on 21st December, 2016 for testing. GST is assumed to be applicable from 1st July, 2017. On 10th
December, 2017, these goods are returned by the person testing the goods.is he liable to pay tax? Sol: No, since the goods are returned within 6 months from the date of applicability of GST, no tax will be payable. 2: In IIIustration 1 above, if the goods had been returned on 10th January, 2017, Does tax liability occurs? Sol: Yes, the tax will have to be paid by the person who returned the goods because 6 months elapses from the date of applicability of GST. 07.Adjudication /Appeals under earlier law? 07.1 Claim of CENVAT credit to be disposed of under the earlier law? (Sec 142 (6) of CSGT Bill)(Sec 182 of Model SGST Law) Every proceeding of appeal, revision, review or reference relating to a claim of CENVAT Credit under the earlier law. Shall be disposed of in accordance with the provisions of earlier law, and any amount of credit found to be admissible shall be refunded in cash, Notwithstanding anything to the contrary contained under the earlier law other than Section 11B(2) of Central Excise Act, 1944 Shall be disposed of in accordance with the provisions of earlier law, and if any amount of credit becomes recoverable as a result of such appeals etc. the same shall be recovered as an arrears of tax revenue under this Act and the amount so recovered shall not be admissible as Input Tax Credit. 07.2 Finalization of proceedings relating to Output Duty Liability? (Sec 142 (7) of CSGT Bill) (Sec 183 of Model SGST Law) Every proceeding of appeal, revision, review or reference relating to any output duty liability initiated before the appointed day, shall be disposed of in accordance with the provisions of earlier law, If any amount becomes recoverable as a result of such appeal etc., revision, review or reference, the same shall be recovered as an arrear of tax under this Act and amount so recovered shall not be admissible as input tax credit under this Act. If any amount found to be admissible shall be refunded in cash, notwithstanding anything contained under the provision of earlier law other than provisions of 11B (2).
07.3 Amount recovered or refunded in pursuance of Assessment or Adjudication Proceedings? (Sec 142 (8) of CSGT Bill)(Sec 184 of Model SGST Law) Where in pursuance of an assessment or adjudication instituted, whether before or after the appointed day, under the earlier law any amount of tax, interest, fine or penalty becomes Recoverable as an arrear of tax under this Act and the amount so recovered shall not be eligible for input tax credit. Refundable to the taxable person, the same shall be refunded to him in cash under the earlier law, notwithstanding anything contrary in the said law other than Section 11B (2) of Central Excise Act 1944. 07.4 Amount recovered or refunded pursuant to revision of returns? (Sec 142 (9) of CSGT Bill) (Sec 185 of Model SGST Law) Where any return, furnished under the earlier law, is revised and if, pursuant to such revision, Any amount is found to be recoverable from the taxable person, the same shall be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissibleasinput Tax Credit under this Act. Any amount found to be refundable to any taxable person, the same shall be refunded to him in cash under the earlier law, notwithstanding anything to the contrary contained in the said law other than the provisions of Section 11B(2) of the Central Excise Act, 1944. 08.How transactions in midway can be treated? 08.1 In case of long term construction/ works contracts? (Sec 186 of Model GST Law) The goods and/ or services supplied on or after the appointed day In pursuance of a contract entered into prior to the appointed day Shall be liable to tax under the provisions of this Act Illustration: A contract for a painting job was entered on 19th March, 2017. Assume the applicability of GST from 1st July, 2017. The job is performed from 10th July, 2017 to 30th July, 2017. Is the supplier taxable?
Sol: Yes, the said supply will be taxable under GST law. It is clearly understood that the provisions of earlier central laws that are to be subsumed under GST would be categorized under CGST and VAT / CST under SGST. 08.2 In case of Progressive or periodic supply of goods or services? (Sec 142 (11) (c) of CSGT Bill) (Sec 187 of Model SGST Law) Notwithstanding anything contained in Section 12 (TOSG) and Section 13 (TOSS) No tax shall be payable on the supply of goods and /or services made on or after the appointed day If the consideration for the said supply has received prior to the appointed day and the duty or tax payable thereon has already been paid under the earlier law 08.3 Taxability of supply of services in certain cases (Sec 142 (11) (b) of CSGT Bill) (Sec 188 of Model SGST Law) Notwithstanding anything contained in section 13 or 14, the tax in respect of the taxable services shall be payable under the earlier law to the extent the point of taxation in respect of such services arose before the appointed day. Explanation: Where the portion of the supply of services is not covered by this section, such portion shall be liable to tax under this Act. 08.4 Taxability of supply of goods in certain cases (Sec 142 (11) (a) of CSGT Bill) (Sec 189 of Model SGST Law) Notwithstanding anything contained in section 12 or 14, the tax in respect of the taxable goods shall be payable under the earlier law to the extent the point of taxation in respect of such goods arose before the appointed day. Explanation: Where the portion of the supply of goods is not covered by this section, such portion shall be liable to tax under this Act. 08.5 Deduction of tax source? (Sec 142 (13) of CSGT Bill) (Sec 196 of Model SGST Law) Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the earlier law and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 46 shall be made by the Deductor under the said section where payment to the said supplier is made on or after the appointed day. ------X-----